Chrysler’s entrance into the hybrid vehicle market is starting with a battle against General Motors. General Motors is offering is 2009 Chevrolet Tahoe hybrid at $50,490 MSRP with a four-wheel drive available at $53,295. Chrysler is taking advantage of GM’s early entry into the green(er) vehicle market by slashing MSRP prices on the 2009 Dodge Durango and 2009 Chrysler Aspen hybrids.

GM CEO Rick Wagoner and the company’s board have apparently noted the frustration and anger of consumers over gas prices in recent months. General Motors has announced several changes to its business practices including the potential sale of the Hummer name and the closing of several truck plants this week. These steps show that General Motors is concerned with its image and cognizant of changes in the auto industry.

Wagoner made a more impressive announcement that should please drivers looking for domestic hybrid vehicles. The board of General Motors has approved funding to produce the flex-fuel Chevy Volt in the company’s Hamtramck, MI factory. This move is meant to quell skepticism by competitors and industry observers that the Volt would reach showrooms by 2010.

The increasing subsidies and government support for biofuels has led a Texas Chevrolet dealer to establish its own biofuel station. Classic Chevrolet/HUMMER in Dallas, Texas has installed nine biodiesel and E-85 pumps in a station adjacent to its quick lube shop. The dealership spent $500,000 to outfit the station for the benefit of Chevy and HUMMER customers interested in purchasing trucks and SUVs powered by biofuels.

Lithium-ion batteries are quite the hot topic in the green car industry these days. Car companies can’t seem to line up fast enough to test all the options available for the cars of the future.

General Motors is testing lithium-ion technology from two companies in hopes to roll out the Chevrolet Volt by 2010 when it is also expected to produce the plug-in hybrid Saturn Vue. An estimated cost per lithium-ion battery is $10,000 that is provided by A123 Systems in Watertown, MA. GM is also utilizing the combined efforts of South Korea’s LG Chem and Compact Power from MI in the Chevy Volt test.

The lithium-ion battery is expected to get 40 miles on one charge but the use of the technology is not free of criticism. The most obvious criticism is the questionable lifespan. The industry wants guarantees of a battery that can offer 10-15 years to the consumer.

As carmakers look to the future and rethink diesel a Kelley Blue Book marketing study suggests they might need to think again even in the advent of the 2008 car showings.

The study shows that about 6% of Americans think diesel cars could be in our future as opposed to the 40% supporting the growth of the hybrid. The minority may visit the 2008 car shows in support of the new diesel offerings from Jeep, Mercedes-Benz and VW. It is hard to say however, if their support will carry carmakers into the future even though the registration of diesel passenger vehicles was up 80% from 2000 to 2005 according to information compiled by Polk.

Along with the favorable Polk data, another report from May 2007 compiled by UBS Limited, Is Diesel Set to Boom in the U.S.?, indicates that diesel will surpass hybrids in the next five years in sales. Can it? Diesel brings back memories of dirt and noise, ooooh that smell. Is the diesel of the future any different?